The Export Credit Guarantee Corporation of India (ECGC) is optimistic that the Nirvik scheme announced by the Union Government recently would give a fillip to export lending and insurance cover for export credit.
Geetha Muralidhar, Chairman and Managing Director of ECGC, told The Hindu recently that the scheme announced by the Minister for Commerce and Industry was expected to get government approval soon. Currently, the average cover given to banks by the ECGC is 60%.
In the last four to five years, the Corporation has paid nearly Rs. 1,000 crore a year towards claims to various banks and subsequently, it gradually decreased the cover.
Under the Nirvik scheme, ECGC will provide 90% cover. The additional outgo, if any, due to the enhanced cover would be supported by the government and the scheme would be valid for five years.
Though there has been a fall in claims in the last six months, the ECGC is optimistic that business and lending would pick up soon and the scheme would give a fillip to it.
ECGC also provides various direct covers and has live data and credit profile information.
It provides details of nearly 1.5 lakh overseas buyers and 20,000 exporters, she said.
Under the Nirvik scheme, the ECGC will provide 90% cover, as against 60% being given to banks at present
You need to subscribe or sign-up to read Today's Paper articles.
Already have an account ? Sign in
Find mobile-friendly version of articles from the day's newspaper in one easy-to-read list.
Enjoy reading as many articles as you wish without any limitations.
A select list of articles that match your interests and tastes.
Move smoothly between articles as our pages load instantly.
A one-stop-shop for seeing the latest updates, and managing your preferences.
We brief you on the latest and most important developments, three times a day.
*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.
Support The Hindu's new online experience.
Already a user? Sign In